IMF Approves Disbursement of the Second Tranche Under the Extended Arrangement

In line with the agreement on the programme supported by the three-year
Extended Fund Facility (Extended Fund Facility, EFF) approved on May 13, 2002,
the Yugoslav delegation held talks with the IMF Mission from July 3-15,
2002.

The meetings were devoted to the review of the quarterly performance targets,
as well as required structural improvements set as condition for the
disbursement of the second tranche under the Extended Fund Facility. The
approval by the IMF would enable the FRY to draw the second tranche under the
financing arrangement.

On August 16, 2002, the IMF Executive Board approved the Extended Fund
Facility target performance Report under the Programme, thus enabling FR
Yugoslavia to draw SDR 50 million (around USD 66 million) from the IMF on August
21, 2002.